Chapter 4901:1-19 Alternative Rate Plan; Exemptions

4901:1-19-01 Definitions.

(A) "Alternative rate plan" means a method, alternate to the method provided in section 4909.15 of the Revised Code, for establishing rates and charges for a distribution service or for a commodity sales service or ancillary service that is not exempt pursuant to section 4929.04 of the Revised Code. Alternative rate plans may include, but are not limited to, methods that provide adequate and reliable natural gas services and goods in this state; minimize the costs and time expended in the regulatory process; tend to assess the costs of any natural gas service or goods to the entity, service, or goods that cause such costs to be incurred; afford rate stability; promote and reward efficiency, quality of service, or cost containment by a natural gas company; or provide sufficient flexibility and incentives to the natural gas industry to achieve high quality, technologically advanced, and readily available natural gas services and goods at just and reasonable rates and charges. Alternative rate plans also may include, but are not limited to, automatic adjustments based on a specified index or changes in a specified cost or costs.

(B) "Affiliate", when used in relation to any entity, means another entity which controls, is controlled by, is under common control with, or shares common ownership, with the regulated entity.

(C) "Alternative provider" means a seller, other than the applicant, who provides the same or functionally equivalent product.

(D) "Ancillary service" means a service that is ancillary to the receipt or delivery of natural gas to consumers including, but not limited to, storage, pooling, balancing, and transmission.

(E) "Commodity sales service" means the sale of natural gas to consumers, exclusive of any distribution or ancillary service.

(F) "Comparable service" means any regulated service or goods whose availability, quality, price, terms, and conditions are the same as or better than those of the services or goods that the natural gas company provides to a person with which it is affiliated or which it controls, or, as to any consumer, that the natural gas company offers to that consumer as part of a bundled service that includes both regulated and exempt services or goods.

(G) "Consumer" means any person or association of persons purchasing, delivering, storing, or transporting, or seeking to purchase, deliver, store, or transport, natural gas, including industrial consumers, commercial consumers, and residential consumers, but not including natural gas companies.

(H) "Control" (including the terms "controlling," "controlled by," and "under common control with") includes, but is not limited to, the possession, directly or indirectly, of the authority to direct or cause the direction of the management or policies of a company. A voting interest of ten per cent or more creates a presumption of control.

(I) "Distribution service" means the delivery of natural gas to a consumer at the consumer's facilities, by and through the instrumentalities and facilities of a natural gas company, regardless of the party having title to the natural gas.

(J) "Four firm concentration ratio" means a measure of market concentration consisting of the sum of the market shares of the four largest firms in the market.

(K) "Herfindahl-Hirschman index (HHI)" means a measure of market concentration which is calculated by summing the squares of the individual market shares of all suppliers in a relevant market.

(L) "Lerner index" is a measure of market power which is calculated as: L = (P - C)/P, where L is the Lerner index for a given firm and P and C are price and marginal cost, respectively, at that firm's profit-maximizing output.

(M) "Market" means the set of all actual and potential buyers and sellers of a particular product.

(N) "Product" means commodity sales and/or ancillary goods or services.

(O) "Reasonably available alternatives" means buyers have access to a product that is available soon enough, priced low enough, with quality high enough, under comparable terms and conditions to permit its substitution as an alternative.

(P) "Relevant market" means the market for the product that is the subject of the application for exemption or alternative rate making.

(Q) "Transmission" means the act or process of transporting the commodity in bulk from a source or sources of supply to principal parts of the system or to other utility systems.

Replaces: 4901:1-19-02

Effective: 11/10/2006
R.C. 119.032 review dates: 09/30/2011
Promulgated Under: 111.15
Statutory Authority: 4929.10
Rule Amplifies: 4909.04, 4909.05
Prior Effective Dates: 3/24/97

4901:1-19-02 Purpose and scope.

(A) This chapter governs the filing, consideration, and implementation of an application made pursuant to section 4929.04 of the Revised Code, to exempt any commodity sales service or ancillary service of a natural gas company from all provisions of: Chapter 4905. of the Revised Code with the exception of section 4905.10; Chapter 4909. and Chapter 4935., with the exception of sections 4935.01 and 4935.03; sections 4933.08, 4933.09, 4933.11, 4933.123, 4933.17, 4933.28, 4933.31, and 4933.32 of the Revised Code; and from any rule or order issued under those chapters or sections, including the obligation under section 4905.22 of the Revised Code, to provide the commodity sales service or ancillary service, subject to divisions (D) and (E) of section 4929.04 of the Revised Code.

(B) This chapter also governs the filing and consideration of an application made pursuant to section 4929.05 of the Revised Code, by a natural gas company to request approval of an alternative rate plan. The applicant has the burden to document and demonstrate in its alternative rate plan filing that the applicant is in compliance with section 4905.35 of the Revised Code, which prohibits unjust, unreasonable, or preferential rates, that the applicant is in substantial compliance with the state's natural gas regulatory and economic policy specified in section 4929.02 of the Revised Code and that the applicant will continue to be in substantial compliance with section 4929.02 of the Revised Code, after implementation of its alternative rate plan.

Replaces: 4901:1-19-01

Effective: 11/10/2006
R.C. 119.032 review dates: 09/30/2011
Promulgated Under: 111.15
Statutory Authority: 4929.10
Rule Amplifies: 4909.04, 4909.05
Prior Effective Dates: 3/24/97

4901:1-19-03 Waivers.

(A) The commission may waive any provision in these rules upon a motion for good cause shown, or upon its own motion. In determining whether good cause has been shown, the following factors, among other things, may be taken into consideration.

(1) Whether other information, which the utility would provide if the waiver is granted, is sufficient for commission staff to effectively and efficiently review the application.

(2) Whether the information required to be filed by these rules, absent a waiver, is relevant to the commission's consideration of whether the application is reasonable and in the public interest.

(3) Whether the information, which is the subject of the waiver request, is reasonably available to the applicant from the information which it maintains or is reasonably obtainable by the applicant.

(4) The expense to the applicant in providing the information which is the subject of a waiver request.

(5) Whether granting of the waiver is in the public interest.

(B) Except for good cause shown, all waiver requests in an alternative rate plan case shall be filed thirty calendar days or more before the docketing of the application with the commission.

(C) All waiver requests in an exemption case shall be filed with the application and served upon all parties who are also being served a copy of the application under paragraph (B)(4) of rule 4901:1-19-04 of the Administrative Code. The applicant is encouraged to consult with the commission staff regarding its proposed waiver requests prior to the actual filing of these requests so as to avoid any undue delay in the processing of the application.

(D) Small natural gas companies should contact the staff of the commission of their intent to file an alternative rate plan or an exemption application to review individual company circumstances that support waivers and to investigate alternate filing requirements.

R.C. 119.032 review dates: 09/19/2007 and 09/30/2011

Promulgated Under: 111.15

Statutory Authority: 4929.10

Rule Amplifies: 4909.04, 4909.05

Prior Effective Dates: 3/24/97

4901:1-19-04 Filing requirements for applications filed pursuant to section 4929.04 of the Revised Code (exemption applications).

(A) Notice of intent

The applicant shall notify the commission staff by letter addressed to the directors of the utilities department and the consumer services department of its intent to file an application at least thirty calendar days prior to the expected date of filing.

(B) Form of an application

(1) An application shall be in a form substantially similar to the form contained in the appendix of this rule.

(2) All testimony supporting the application shall be filed with the application.

(3) An applicant shall file with the commission the original and ten copies of its application and supporting testimony.

(4) An applicant shall provide one copy of its application and supporting testimony to the office of the consumers' counsel and mail a copy to each party of record in its previous alternative rate plan or rate case proceeding. An applicant shall have available one copy of its plan in each principal business office for public inspection.

(5) An exemption shall be designated by the commission's docketing division using the acronym EXM.

(1) The applicant shall fully demonstrate that it is in substantial compliance with the policy of this state specified in section 4929.02 of the Revised Code. The applicant shall also include a detailed discussion as to how the approval of the proposed exemption(s) will promote such policy. The applicant shall explain how granting the exemption(s) will affect the applicant's percentage of income payment plan customers, and if applicable, how any adverse impacts on these customers will be mitigated.

The applicant shall provide a discussion showing that the requested exemption(s) does not involve undue discrimination for similarly situated customers. The applicant shall provide a description of the internal process for addressing customer complaints and inquiries. The applicant shall also include the name of a contact person to work with the commission staff. This person shall have the authority to resolve customer complaints and inquiries received by commission staff. The applicant shall also provide clear and accurate, written materials related to service and product offerings which promote effective customer choice and the provision of adequate customer service.

(2) The application shall include a detailed discussion of why the applicant believes it is currently subject to effective competition in the provision of each commodity sales service or ancillary service for which it is requesting an exemption and/or a detailed discussion of why the applicant believes the customers in the relevant market currently have reasonably available alternatives to each commodity sales service or ancillary service for which it is requesting an exemption. Detailed discussions shall include all supporting documentation which shall include empirical data. The detailed discussions of effective competition are required to demonstrate the degree of competitive behavior in the relevant market. The discussion shall include, but is not limited to, the following:

(a) The degree to which the product is of substantially the same quality provided by any or all of the sellers.

(b) The degree to which buyers and sellers are readily able to enter or leave the market and switch between sellers and buyers. (i.e., existence of entry and exit barriers and the discussion of any barriers which might exist).

(d) How and to what degree the product is available in the relevant market from alternative providers. (include a detailed discussion of the extent to which the functionally equivalent substitute service(s) are available from alternative providers in the relevant market and the number of sellers, their respective share of the market, the expected growth in the market, the expected growth in suppliers, and growth in their respective shares.).

(e) Affiliations between suppliers.

(f) All data and calculations necessary to measure market concentration or market power in the relevant market, e.g., the four firm concentration ratio, Herfindahl-Hirschmen index, Lerner index, and any other index(s) chosen to support the application.

(3) The application shall also include the following information:

(a) A detailed description of each commodity sales service(s) and/or ancillary service(s) for which the applicant is requesting an exemption.

(b) The potential number of customers for each commodity sales service(s) and/or ancillary service(s) for which the applicant is requesting an exemption.

(c) A discussion of the availability of upstream capacity needed to support the service(s) for which the applicant is requesting an exemption.

(d) If, pursuant to division (E)(D) of section 4929.04 of the Revised Code, the application requests an. exemption for all of the applicant's commodity sales services, it shall contain, in addition to the information required in paragraphs (C)(3)(a) to (C)(3)(c) of this rule, a showing that the applicant offers distribution services on a fully open, equal, and unbundled basis to all its customers, and that all such customers reasonably may acquire commodity sales services from suppliers other than the applicant.

(4) Applicants proposing to provide exempt services on an integrated company basis (as opposed to provision of exempt services by a separate affiliate or subsidiary company) shall, consistent with division (F)(E)(1) of section 4929.04 of the Revised Code, submit a proposed separation plan to ensure to the maximum extent practicable that operations, resources, and employees involved in providing marketing or exempt commodity sales services or ancillary services are operated and accounted for separate from nonexempt operations. The applicant shall provide a detailed discussion of its proposed separation plan and address how the proposed separation plan satisfies each item presented below or, alternatively, why these are not applicable.

(a) Describe how the plan is consistent with the policy of the state under section 4929.02 of the Revised Code.

(b) Describe how the plan will ensure maintenance of applicant's human resources and technical skills necessary to provide safe, reliable, and economic services to nonexempt tariff customers.

(c) Describe the applicant's organization structure and operating practices to physically separate its exempt and nonexempt operations. Applicant's organizational hierarchy and reporting relationships should maximize the functional independence of exempt and nonexempt services. Operating practices that would maximize separations include, but are not limited to, physical separation of operations, assuring protection of customer information maintained by the regulated servicesentity, assuring protection against undue discrimination in favor of exempt services, separate employees for exempt and nonexempt services, and uniform prices, terms, and conditions for contracted services.

(d) Describe how the separation plan provides safeguards and conditions to ensure that costs associated with exempt operations, resources, and employees are not borne by rate payers of regulated services. Describe specific policies, practices, procedures, and controls the applicant will have in place to prevent cross-subsidization by the applicant's regulated customers.

(e) Describe the applicant's accounting and cost allocation policies, practices, and procedures relating to exempt operations. describe all exempt operations, describe all transactions between exempt and nonexempt operations, and describe cost apportionment methodology. Address allocation procedures for office space, office equipment, administrative overhead, and support services. Explain the cost allocation of exempt and nonexempt revenues, expenses, and investment.

(5) The applicant shall submit a proposed code of conduct which governs both the applicant's adherence to the state policy specified in sections 4905.32 and 4929.02 of the Revised Code, and its sharing of information and resources between those employees involved in the provision or marketing of exempt commodity sales services or ancillary services, and those employees involved in the provisioning or marketing of nonexempt commodity sales services or ancillary services.

(6) Provide one scored copy each of all proposed tariff schedules where applicable (schedule E-1) which have all proposed changes underscored and current tariff schedules to which changes are proposed (schedule E-2). Designate in the margin the type of proposed change by using the following designation(s):

(D) - To signify discontinued rate or regulation

(I) - To signify increased rate

(N) - To signify new rate or regulation

(R) - To signify reduced rate

(S) - To signify reissued matter

(T) - To signify a change in text, but no change in rate or regulation

Identify each page with schedule E-__, page __ of __ in the upper right hand corner of the schedule.

(7) Provide the rationale underlying the proposed changes to the tariff (schedule E-3). Changes common to multiple rate forms need only be discussed once. Reference the appropriate current or proposed rate schedules to which the rationale is applicable. Use the proper schedule and page number.

(8) Provide a description of all dockets in which there are special arrangements with customers pursuant to section 4905.31 of the Revised Code, which customers may be affected by the application.

Appendix

Before the Public Utilities Commission of Ohio

In the Matter of the Application of )_________________________________(1) )for Approval of a General Exemption of ) Certain Natural Gas Commodity Sales ) Services or Ancillary Services from ) Chapters 4905, 4909, and 4935 except ) Sections 4905.10, 4935.01, and 4935.03, ) and from specified sections of Chapter ) 4933 of the Revised Code. )

Case No. - GA-EXM

APPLICATION

_____________________ (2), the applicant in this proceeding, is a natural gas company providing service to ___________ (3) customers in the state of Ohio, of which approximately __________(4) are expected to be affected by this application.

Applicant submits this application pursuant to section 4929.04 of the Revised Code, for approval of an exemption from specified chapters and sections of the Revised Code for ____________________(5). Exhibits _________ through __________ are attached to this application and are incorporated herein

The Applicant requests the Commission to consider the facts and proposals set forth in this application and to approve the applicant's request for an exemption.

Respectfully Submitted,

______________________(6)

President or Vice President

______________________

Secretary or Treasurer

Company Official to be Contacted ____________________ Regarding the Application

Mailing Address ____________________

____________________

Telephone Number (___)________________

Attorney for Applicant ____________________

VERIFICATION

STATE OF OHIO

COUNTY OF __________

I, ______________________________________________, President/Vice President and I, ______________________________________, Secretary/Treasurer of____________________ (Exact company name) (Exact company name) hereby verify that the information contained in this application is true and correct to the best of our knowledge.

________________________________

President / Vice President

________________________________

Secretary/Treasurer

Sworn and subscribed before me this __________ day of ___________, _______.

________________________________

Notary Public

My term expires:

(SEAL)

INSTRUCTIONS

(1) Place the total number of customers served by the applicant within Ohio in blank three and the approximate number of customers proposed to be affected by this application in blank four.

(2) Provide a brief descriptive title of any and all commodity sales service or ancillary service covered by the application, including the customer class(es) for whom the exempted service will be made available in blank five.

(3) The president or vice president, and the secretary or treasurer of the applicant shall sign the application form at blank six and provide the name, address, and telephone number of the person to be contacted regarding questions concerning the application. The verification on page two of the appendix to this rule shall also be completed.

Effective: 11/10/2006
R.C. 119.032 review dates: 08/22/2006 and 09/30/2011
Promulgated Under: 111.15
Statutory Authority: 4929.10
Rule Amplifies: 4909.04
Prior Effective Dates: 3/24/97

4901:1-19-05 Filing requirements for applications filed pursuant to section 4929.05 of the Revised Code (alternative rate plan applications).

(A) Notice of intent

(1) Consistent with the requirements of paragraph (A) of chapter I of appendix A to rule 4901-7-01 of the Administrative Code, the applicant shall notify the public utilities commission in writing of its intent to file an application at least thirty calendar days prior to the expected date of filing. In addition to notifying the public utilities commission and the mayor and legislative authority of each municipality included in such application(if applicable), the applicant shall also notify, in writing, the office of the consumers' counsel, each party to the applicant's last general rate case, exemption case and/or alternative rate case, and any party not otherwise represented who requests from the applicant to be notified.

(2) Natural gas companies filing an alternative rate case are required to file PFN exhibit 1 and PFN exhibit 2 (if applicable) as detailed in appendix A to rule 4901-7-01 of the Administrative Code, the proposed rates, a brief summary of the applicant's proposed alternative rate plan, a typical bill comparison, and any waiver requests. If the proposed rates cannot be specified, the notice shall provide an explanation of the methodology proposed for changing rates during the term of the plan and an illustration of the effect on rates given various levels of any indices proposed to be used to set rates. Applicants filing a natural gas alternative rate case will not be required to file PFN exhibit 3 detailed in appendix A to rule 4901-7-01 of the Administrative Code.

(B) Form of an application

(1) An application shall be made in a form substantially similar to the form contained in the appendix of this rule.

(2) An applicant shall file with the commission the original and ten copies of its application.

(3) An applicant shall provide one copy of its plan to the office of the consumers' counsel and mail a copy to each party of record in its previous alternative rate plan and/or exemption case and/or rate case proceeding as applicable. An applicant shall have available one copy of its plan in each principal business office for public inspection.

(4) An application shall be designated by the commission's docketing division using the acronym ALT.

(1) Pursuant to section 4929.05 of the Revised Code, to determine just and reasonable rates under section 4909.15 of the Revised Code applicants shall submit the exhibits described in divisions (A) to (E) of section 4909.18 of the Revised Code, and standard filing requirements pursuant to rule 4901-7-01 of the Administrative Code,(SFRs), when filing an alternative rate case unless otherwise waived by rule 4901:1-19-03 of the Administrative Code.

The applicant may use up to nine months of forecasted data for its unadjusted test year operating income statement. However, the forecasted data shall use the corporate budget which has been approved by the highest level of officers of the applicant and is utilized to manage and operate the applicant on a day-to-day basis. Adjustments the applicant believes are necessary to make the corporate budget more appropriate for ratemaking purposes are to be presented on schedule C-3 of its filing requirements. Failure to use the corporate budget as the basis of the forecasted portion of the test year may result in the commission finding that the application is deficient. The applicant may request to file a two month update to provide actual financial data and significant changes in budgeted data (to be fully documented). Such a request shall be filed no later than the filing of the application.

(2) In addition to the requirements of appendix A to rule 4901-7-01 of the Administrative Code, the applicant shall provide the following information. This additional information shall be considered to be part of the standard filing requirements for a natural gas company filing an alternative rate plan. The applicant shall have the burden of proof to document, justify, and support its plan.

(a) The applicant shall provide a detailed alternative rate plan, which states the facts and grounds upon which the application is based, and which sets forth the plan's elements, transition plans, and other matters as required by these rules. This exhibit shall also state and support the rationale for the initial proposed tariff changes for all impacted natural gas services.

(b) The applicant shall fully justify any proposal to deviate from traditional rate of return regulation. Such justification shall include the applicant's rationale for its proposed alternative rate plan, including how it better matches actual experience or performance of the company in terms of costs and quality of service to its regulated customers.

(c) If the alternative rate plan proposes a severing of costs and rates, the applicant shall compare how its proposed alternative rate plan would have impacted actual performance measures (operating and financial) during the most recent five calendar years. Include comparisons of the results during the previous five years if the alternative rate plan had been in effect with the rate or provision that otherwise was in effect.

(d) If the applicant has been authorized to exempt any services, the applicant shall provide a listing of the services which have been exempted, the case number authorizing such exemption, a copy of the approved separation plan(s), and a copy of the approved code(s) of conduct.

(e) The applicant shall provide a complete matrix showing the following: each rate, service, or regulation that is included in the plan and an explanation of how it may be affected during the term of the plan.

(f) The applicant shall provide a detailed discussion of how potential issues concerning cross-subsidization of services have been addressed in the plan.

(g) The applicant shall provide a detailed discussion of how the applicant is in compliance with section 4905.35 of the Revised Code, and is in substantial compliance with the policies of the state of Ohio specified in section 4929.02 of the Revised Code. In addition, the applicant shall also provide a detailed discussion of how it expects to continue to be in substantial compliance with the policies of the state specified in section 4929.02 of the Revised Code, after implementation of the alternative rate plan.

(h) The applicant shall provide the projected financial data required in section F of chapter II of appendix A to rule 4901-7-01 of the Administrative Code, through the term of the proposed plan and which reflects the effects of the proposed plan including the effects of any and all assumptions regarding changes in proposed indices.

(i) The applicant shall also provide projected financial data through the term of the proposed plan under the assumption that the proposed plan is not adopted. This additional set of information shall be labeled as section G.

(j) The applicant shall submit a list of witnesses sponsoring each of the exhibits in its application.

(3) To the extent the applicant is seeking alternative forms of rate setting than that found in section 4909.15 of the Revised Code, the applicant should detail those commitments to customers it is willing to make to promote the policy of the state specified in section 4929.02 of the Revised Code. The extent of commitments specified should be dependent upon the degree of freedom from section 4909.15 of the Revised Code requested by the applicant.

Appendix

Before the Public Utilities Commission of Ohio

In the Matter of the Application of )____________________________(1) ) for Approval of an Alternative Form of ) Regulation and for a Change in its ) Rates and Charges. )

Case No. - GA-ALT

APPLICATION

____________________ (2), the applicant in this proceeding, is a natural gas company providing service to __________ (3) customers in the state of Ohio, of which approximately __________ (4) are expected to be affected by this application.

Applicant submits this application pursuant to section 4929.05 of the Revised Code, for approval of an alternative form of regulation. Exhibits __________ through __________ are attached to this application and are incorporated herein.

The applicant requests the commission to consider the facts and proposals set forth in this application, to approve the requested rate changes, and to approve the applicant's alternative rate plan.

Respectfully Submitted,

_________________________________(5)

President or Vice President

_________________________________

Secretary or Treasurer

Company Official to be Contacted ____________________ Regarding the Application

Mailing Address ____________________

____________________

Telephone Number (___)_______________

Attorney for Applicant ____________________

Approved Test Year ____________________

Approved Date Certain ____________________

VERIFICATION

STATE OF OHIO

COUNTY OF__________

I, _____________________________, President/Vice President and I, ___________________, Secretary/Treasurer of ____________________________ hereby verify that the information (Exact company name) contained in this application is true and correct to the best of our knowledge.

___________________________

President/Vice President

___________________________

Secretary/Treasurer

Sworn and subscribed before me this __________ day of________, _______.

___________________________

Notary Public

My term expires:

(SEAL)

INSTRUCTIONS

(1) Place the total number of customers served by the applicant within Ohio in blank three and the approximate number of customers proposed to be affected by this application in blank four.

(2) The president or vice president, and the secretary or treasurer of the applicant shall sign the application form at blank five and provide the name, address, and telephone number of the person to be contacted regarding questions concerning the application. The verification on page two of the appendix to this rule shall also be completed.

Effective: 11/10/2006
R.C. 119.032 review dates: 08/22/2006 and 09/30/2011
Promulgated Under: 111.15
Statutory Authority: 4929.10
Rule Amplifies: 4929.05
Prior Effective Dates: 3/24/97

4901:1-19-06 Acceptability of exemption cases and alternative rate plan applications.

(A) Determination of date of application's acceptance by commission

(1) The following procedures and timelines shall be used to determine the date of acceptance for an exemption case or an alternative rate plan case. The procedures and timelines for an alternative rate plan case are consistent with those contained in chapter II, paragraph (A)(4)(b) of appendix A to rule 4901-7-01 of the Administrative Code, used to determine the date of a rate case application's acceptance by the commission.

(a) The commission staff will inform the applicant by letter within twenty calendar days of the original filing date for an exemption case or within thirty calendar days for an alternative rate plan case of the staff's determination whether the application as originally filed is in technical compliance, substantially in compliance or fails to substantially comply with the filing requirements. The letter will indicate any defects or deficiencies with the filing requirements.

(b) If the application is in technical compliance, the application shall be deemed to have been filed as of the date the original application was filed.

(c) If the application is in substantial compliance, the applicant shall file its response to the commission staff's letter within fourteen calendar days. If the applicant's response places the application in technical compliance, the application shall be considered as having been filed as of the date the original application was filed.

(d) If the application does not substantially comply, the application shall be considered as having been filed as of the date upon which the supplemental information rendering the application in technical compliance with the filing requirements was filed.

(B) Commission entry accepting application

(1) The commission shall consider supplemental information docketed by the utility in determining the completeness of the filing.

(2) During the processing of the application, the commission may dismiss any application which does not substantially comply with the filing requirements of rules 4901:1-19-04 and 4901:1-19-05 of the Administrative Code.

(3) Provided the applicant has complied with paragraph (A)(1)(c) of this rule, if the commission issues no entry within forty-five calendar days of the date of the original docketing of the application with the commission for an exemption case or within sixty calendar days for an alternative rate plan case, the application shall be considered in compliance with the filing requirements and as having been filed as of the date of the original docketing of the application for purposes of calculating the time periods provided in section 4929.07 of the Revised Code, for an exemption case and sections 4909.42 and 4929.07 of the Revised Code, for an alternative rate plan case.

Effective: 11/10/2006
R.C. 119.032 review dates: 08/22/2006 and 09/30/2011
Promulgated Under: 111.15
Statutory Authority: 4929.10
Rule Amplifies: 4929.04, 4929.05
Prior Effective Dates: 3/24/97

4901:1-19-07 Report filed by the staff.

The commission staff will file a written report which addresses, at a minimum, the reasonableness of the current rates pursuant to section 4909.15 of the Revised Code for applications filed pursuant to section 4929.05 of the Revised Code.

R.C. 119.032 review dates: 09/19/2007 and 09/30/2011

Promulgated Under: 111.15

Statutory Authority: 4929.10

Rule Amplifies: 4929.05

Prior Effective Dates: 3/24/97

4901:1-19-08 Hearings.

(A) Exemption case

(1) After notice and a period for public comment, the commission shall conduct a hearing upon an application by a natural gas company with fifteen thousand or more customers for an exemption of any commodity sales service or ancillary service from all provisions of Chapter 4905. (excepting section 4905.10 of the Revised Code), Chapter 4909., Chapter 4935., (excepting sections 4935.01 and 4935.03 of the Revised Code), from sections 4933.08, 4933.09, 4933.11, 4933.123, 4933.17, 4933.28, 4933.31, 4933.32 of the Revised Code, and from any rule or orders issued by the commission pursuant to those statutes. The commission may, upon its own motion, conduct a hearing upon such an application by a natural gas company with fewer than fifteen thousand customers. The applicant has the burden of proof as to the issues raised in a proceeding under this rule. At the hearing, the applicant shall establish either that:

(a) It is subject to effective competition with respect to the commodity sales service or ancillary service.

(b) The customers of the commodity sales service or ancillary service have reasonably available alternatives.

(B) Alternative rate plan case

(1) A hearing shall be held to consider an application filed pursuant to section 4929.05 of the Revised Code.

(2) Local public hearings shall be held in accordance with the criteria set forth in section 4903.083 of the Revised Code.

Effective: 11/10/2006
R.C. 119.032 review dates: 08/22/2006 and 09/30/2011
Promulgated Under: 111.15
Statutory Authority: 4929.10
Rule Amplifies: 4929.04, 4929.05
Prior Effective Dates: 3/24/97

4901:1-19-09 Participation by parties and staff.

(A) Intervention

Intervention in a proceeding pursuant to an application filed under section 4929.04 or 4929.05 of the Revised Code, shall be governed by section 4903.221 of the Revised Code and rule 4901-01-11 of the Administrative Code.

(B) Technical and settlement conferences

The commission staff or an attorney examiner may, at any time, schedule a settlement or technical conference or meeting to discuss and consider issues raised by either type of application and, if available, the testimonies or comments filed by the commission staff and the intervenors in the proceeding. The commission may appoint an attorney examiner or other commission staff to act as a facilitator at the settlement conference or meeting.

(1) For exemption applications filed by natural gas companies with fifteen thousand or more customers or by those natural gas companies with less than fifteen thousand customers for which the commission has ordered that a hearing be held, the commission staff and any intervenor who wishes to file initial testimony addressing the applicant's application shall do so within ninety calendar days of the acceptance of the application, unless otherwise ordered by the commission.

(2) For exemption applications filed by natural gas companies with less than fifteen thousand customers for which the commission has determined that a hearing is not necessary, the commission staff and any intervenor who wishes shall file initial comments which address the applicant's application within ninety calendar days of the date of acceptance of the application, unless otherwise ordered by the commission.

(3) Initial testimony or comments shall comply with the following:

(a) Specifically designate those portions of the exemption application which the commission staff or intervenor considers to be objectionable.

(b) Sufficiently explain how the portions of the exemption application considered to be objectionable are unjust and unreasonable.

(c) Specifically designate those portions of the exemption application that the commission staff or intervenor agrees with applicant and why.

(d) Outline the specific proposal to remedy the deficiency.

(e) Be filed with the commission and served on all parties.

(4) The commission may at its discretion allow the filing of supplemental testimony/reply comments. Such supplemental testimony/reply comments shall respond to those issues and positions presented by the commission staff and/or intervenors in their initial testimony/comments. Such supplemental testimony/reply comments shall specifically identify those portions of the initial testimony/comments considered to be objectionable and why. Such supplemental testimony/reply comments shall also indicate those areas with which there is agreement and why. All supplemental testimony/reply comments shall be filed with the commission and served upon all parties.

(D) Objections in an alternative rate plan case

(1) In a proceeding filed pursuant to section 4929.05 of the Revised Code, objections may be filed to the staff report and/or to the applicant's application. The applicant may file objections to the staff report. The staff may file objections to the applicant's application for issues (other than the review of the reasonableness of the current rates) relating to the proposed alternative rate plan to the extent the issue is not addressed in the staff report. Intervenors may file objections to the staff report and/or the application. Intervenors shall segregate their objections into two areas:

(a) Objections to the staff report for issues discussed in the staff report and any other issues relating to the review of the reasonableness of the current rates and

(b) Objections to the applicant's application for issues relating to the applicant's proposed alternative rate plan to the extent the issue was not addressed in the staff report. Objections may be accompanied by supporting direct testimony as deemed appropriate.

(2) The objections shall comply with the following:

(a) Specifically designate those portions of the staff report and/or the applicant's application which are considered to be objectionable and explain the objection.

(b) Sufficiently explain how the portions of the report and/or the applicant's application objected to are unjust and unreasonable.

(3) The applicant, any intervenor, or the commission staff may file a motion to strike objections to the staff's written report within ten calendar days after the deadline for the filing of the objections.

(E) Filing of reply/supplemental/additional testimony

Subsequent to the filing of objections, an attorney examiner shall issue a procedural order which shall address the opportunity for the filing of reply testimony by the applicant, supplemental testimony by the intervenor, and additional and/or rebuttal testimony by the staff.

The applicant's reply testimony shall be limited to responding to those objections to its application raised by the commission staff and/or intervenor. An intervenor's supplemental testimony shall be limited to reacting to issues, concerns, and/or proposals embodied in supporting direct testimony and objections to the applicant's application filed by the staff and/or another intervenor.

(F) Any person may file comments concerning an application filed under sections 4929.04 and 4929.05 of the Revised Code, within forty-five calendar days after the application has been filed. Such comments shall:

(1) Sufficiently explain why the application is not consistent with the provisions of the Revised Code for applications filed under sections 4929.04 and 4929.05 of the Revised Code.

(2) Sufficiently explain why the application is not in the public interest.

(3) The applicant shall have ten days after the date that the comments are due to file a response to the comments.

(G) Discovery

Discovery in cases involving applications brought pursuant to section 4929.04 of the Revised Code, shall be served no later than twenty calendar days prior to hearing unless a different deadline has been specified in an order of the commission for the purposes of a specific proceeding. The time period to be used for discovery in cases involving applications brought pursuant to section 4929.05 of the Revised Code, shall be that time period applicable to general rate proceedings, paragraph (B) of rule 4901-1-17 of the Administrative Code. Any motions or requests to change the timing of discovery shall be fully supported. Except as otherwise provided herein, discovery shall proceed according to Chapter 4901-1 of the Administrative Code.

Effective: 11/10/2006
R.C. 119.032 review dates: 08/22/2006 and 09/30/2011
Promulgated Under: 111.15
Statutory Authority: 4929.10
Rule Amplifies: 4929.04, 4929.05
Prior Effective Dates: 3/24/97, 6/3/97

4901:1-19-10 Notice of intent to implement the exemption or alternative rate plan (or withdraw the application).

(A) Exemption case

(1) Within thirty calendar days after the date of issuance of a commission order granting approval of an exemption under section 4929.04 of the Revised Code, or within twenty calendar days after the issuance of a rehearing entry pursuant to section 4903.10 of the Revised Code, whichever is later, the applicant shall either:

(a) File with the commission a notice of the applicant's intention to implement the exemption as directed by the commission in its order, and a copy of the applicant's revised rate schedules.

(b) Withdraw the exemption application if the commission modifies or does not approve as filed the exemption application.

(2) If the applicant files a notice of intent to implement the exemption as approved by the commission, it shall serve that notice on all parties to the proceeding which authorized the exemption.

(3) Failure to file a notice of intent to implement the exemption as ordered by the commission within thirty calendar days of that order will be deemed a withdrawal of the exemption application.

(B) Alternative rate plan case

(1) Within thirty calendar days after the date of issuance of a commission order granting authorization of an alternative rate plan under section 4929.05 of the Revised Code, or within twenty calendar days after the issuance of a rehearing entry pursuant to section 4903.10 of the Revised Code, whichever is later, the applicant shall file a notice of intent to implement the plan as directed by the commission in its order and a copy of its final rate schedules in accordance with section 4929.07 of the Revised Code. The applicant shall do either of the following:

(a) File a copy of its revised rate schedules with a notice of the applicant's intent to implement the alternative rate plan as directed by the commission in its order.

(b) Withdraw the alternative rate plan request if the commission's order modifies or does not authorize the alternative rate plan as filed.

(2) If the applicant files a notice of intent to implement the plan, the commission within thirty calendar days after the date of the filing of the notice, shall do either of the following:

(a) Approve the revised schedules if the commission finds there is no material difference between the authorized alternative rate plan and the filed schedules.

(b) Disapprove the revised schedules if the commission finds that there is a material difference between the authorized alternative rate plan and the filed revised schedules.

(c) If the commission disapproves the revised schedules, it shall provide a written order explaining its reasons for doing so, and it shall permit the applicant an additional thirty calendar days to implement the authorized alternative rate plan or permit the applicant to withdraw the alternative rate plan pursuant to paragraph (B)(1)(b) of this rule.

(3) Failure to file a notice of intention to implement the plan as ordered by the commission within thirty calendar days of that order will be deemed a withdrawal of its alternative rate plan request.

(4) If the applicant withdraws its alternative rate plan application request pursuant to section 4929.07 of the Revised Code, the rates and charges found under section 4929.05 of the Revised Code, by the commission to be just and reasonable pursuant to section 4909.15 of the Revised Code, shall be effective as of the date the applicant files final rate schedules containing those rates and charges.

4901:1-19-11 Terms of an alternative rate plan.

(A) Compliance with state policy during the term of the plan After receiving alternative rate regulation under section 4929.05 of the Revised Code, no natural gas company shall implement the alternative rate regulation in a manner that violates the state policy as specified in section 4929.02 of the Revised Code.

(B) Modification or abrogation of a commission order granting authorization of an alternative rate plan

(1) The commission may, upon its own motion or upon the motion of any person adversely affected by such alternative rate regulation authority, including the natural gas company operating under the plan, and after notice and hearing pursuant to division (A) of section 4929.08 of the Revised Code, modify or abrogate any order accepting a plan issued pursuant to division (A) of section 4929.05 of the Revised Code, where both of the following conditions exists:

(a) The commission determines that the findings upon which the order was based are no longer valid and that the modification or abrogation is in the public interest.

(b) The modification or abrogation is not made more than eight years after the effective date of the order, unless the affected natural gas company consents.

(2) If the commission determines that a natural gas company granted alternative rate regulation is not in substantial compliance with the state policy as specified in section 4929.02 of the Revised Code, that the natural gas company is not in compliance with its alternative rate plan, or that the alternative rate regulation is affecting detrimentally the integrity or safety of the natural gas company's distribution system or the quality of any of the company's regulated services or goods, the commission, after a hearing, may abrogate the order granting such alternative rate regulation.

(3) The commission shall order such procedures as it deems necessary, consistent with these rules, in its consideration for modifying or abrogating an order granting authorization for an alternative rate plan, including any request from the applicant to correct its noncompliance. The commission shall serve notice of such action upon all parties to the proceeding in which the plan was authorized.

(4) Upon a finding that the order granting alternative rate regulation under section 4929.05 of the Revised Code, shall be abrogated, nothing shall prevent the commission from reducing or requiring the reduction of any rate or charge for a service previously covered under the abrogated order. Such reduced rate or charge to be applied prospectively.

The commission may require the applicant to provide progress reports during the term of its authorized alternative rate plan. The commission shall order such procedures as it deems necessary, consistent with these rules, regarding such progress reports, including the frequency, form and content of such reports.

(D) Expiration of the term of an alternative rate plan

If the applicant files no subsequent plan at the expiration of the term of an authorized alternative rate plan, the applicant's rates shall remain frozen at the latest level reached under the authorized plan at the time of expiration until otherwise changed by order of the commission.

Effective: 11/10/2006
R.C. 119.032 review dates: 08/22/2006 and 09/30/2011
Promulgated Under: 111.15
Statutory Authority: 4929.10
Rule Amplifies: 4929.05
Prior Effective Dates: 3/24/97

4901:1-19-12 Abrogation or modification of an order granting an exemption.

(A) A complainant shall provide at a minimum the following information with its application to modify or abrogate an order granting an exemption.

(1) A detailed description of the exact nature of the violation.

(a) Which portion(s) of the separation plan the applicant has failed to comply with and how the applicant has failed to comply.

(b) Which portion(s) of the code of conduct the applicant has failed to comply with and how the applicant has failed to comply.

(d) Which findings of the order granting the exemption are no longer valid and why.

(e) How the modification or abrogation of the order granting the exemption is in the public interest.

(2) Supporting documentation for the complainant's allegation.

(3) The form of remedy requested.

(B) Such complaint shall be designated by the commission's docketing division using the acronym CSS.

(C) The docketing division of the commission shall serve the complaint upon the parties of record for the original exemption case which is the subject of the motion to modify or abrogate.

(D) The commission shall order such procedures as it deems necessary, consistent with these rules, in its consideration for modifying or abrogating an order granting an exemption.

Effective: 11/10/2006
R.C. 119.032 review dates: 08/22/2006 and 09/30/2011
Promulgated Under: 111.15
Statutory Authority: 4929.10
Rule Amplifies: 4929.04
Prior Effective Dates: 3/24/97

4901:1-19-13 Filing requirements for filings made during the term of an alternative rate plan.

A notice of filing of an application to exempt commodity or an ancillary service, which has been the subject of an alternative rate proceeding or which was part of the review of the reasonableness of the current rates for approving an alternative rate plan, shall be served upon each party to the proceeding in which the alternative rate plan was approved and anyone otherwise represented who requests inclusion on the docket service list.

R.C. 119.032 review dates: 09/19/2007 and 09/30/2011

Promulgated Under: 111.15

Statutory Authority: 4929.10

Rule Amplifies: 4929.05

Prior Effective Dates: 3/24/97

4901:1-19-14 Compliance provision.

Nothing in these rules limits the ability of the commission and/or its staff to obtain whatever information deemed appropriate to monitor the compliance with a commission order issued under Chapter 4929. of the Revised Code or to carry out its responsibilities under Title 49 of the Revised Code.

R.C. 119.032 review dates: 09/19/2007 and 09/30/2011

Promulgated Under: 111.15

Statutory Authority: 4929.10

Rule Amplifies: 4929.04, 4929.05

Prior Effective Dates: 3/24/97

4901:1-19-15 Assessment of costs and enforcement.

The commission may, in its discretion, assess the costs of hearing or investigation on a non-consenting applicant or any other party pursuant to section 4903.24 of the Revised Code. The commission shall also prescribe on a case-by-case basis such costs, restrictions, or other enforcement measures as it deems necessary for any utility failing to comply with rules 4901:1-19-01 to 4901:1-19-15 of the Administrative Code.

R.C. 119.032 review dates: 09/19/2007 and 09/30/2011

Promulgated Under: 111.15

Statutory Authority: 4929.10

Rule Amplifies: 4903.24

Prior Effective Dates: 3/24/97